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Preparing for retirement doesn’t have to be scary

Have you ever bought a car or a home? Or used coupons or a customer rewards program to save money? If so, you already have the tools you need to succeed at saving for retirement now — and help ensure an easier, more financially secure transition once you hit that golden age.

AARP has multiple resources available to make sure you’re prepared for retirement, including their friendly digital retirement coach, Avo℠. You can meet Avo at AceYourRetirement.org, a free site from AARP and the Ad Council. In just three minutes, Avo will provide your custom retirement saving action plan, with tips that fit your lifestyle and help you meet your retirement savings goals.

Small steps today can add up to a more secure retirement in the future. Here are a few to get you started:

Automate your retirement contributions

If your company offers a retirement savings plan like a 401(k), you can have part of your paycheck contributed (pre-tax) monthly. If you don’t already contribute, contact your human resources department to find out how you can get started. Contributing 10 to 15 percent of your income annually is recommended; however, if that’s a stretch, you can start small and increase your savings periodically until you meet your goal.

Whether or not you have access to a retirement plan through work, you can set up automatic contributions to a personal retirement plan. The most common fund is an Individual Retirement Account, or IRA, which allows you to invest your own retirement savings in the market. You can set up a monthly or biweekly withdrawal from your checking or savings accounts so you stay on track to meet your retirement savings goals. Two easy ways to set it and forget it!

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Build up your savings

In addition to automating contributions to your 401(k) or personal retirement plan, there are simple tricks you can employ to make everyday saving even easier. The next step is to build on what you’ve started and increase your annual savings by eliminating or cutting costs where you can. Small actions can go a long way: Negotiating a lower rate on your credit card, trimming your monthly cable bill, or unsubscribing from that streaming service you rarely use can add up to meaningful savings over time, especially if you use those cost savings to contribute a bit more to your savings accounts.

Your hobbies and interests also have the potential to help add to your savings. Think about the things you love to do, and see if you can turn them into some extra cash to help you save now, or to help you make a little extra income once you retire. Love to knit? Inquire about selling your cozy, handmade hats and scarves at a local farmers’ market, or list them for sale online. Big baseball fan? Teams hire seasonal help each year for a slew of part-time positions ranging from ticket takers to concession work.

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Contribute a bit more each year

Not at the optimal goal of investing 10 to 15 percent of your annual income in your retirement savings plan just yet? Aim to increase your 401(k) or retirement savings plan contribution each year. Target a 2 percent annual increase, but even just 1 percent will still help you grow the nest egg you can tap into once you’re ready to turn in your office ID badge for good. If you receive an annual raise or bonus, consider allocating most of it toward your retirement savings; it’s an extra boost that you won’t miss now and will get to enjoy later. Every penny counts — and every penny has the potential to grow exponentially.

Another way to grow your contributions is to make sure you’re getting the full benefits that your company offers. Many companies offer matching contributions to encourage their employees to save. First, contact your human resources department to find out if there’s a program in place. If so, you could be eligible for free money. You can maximize your savings by contributing enough to take advantage of your employer’s full match. For example, if your employer matches all of your contributions up to 5 percent of your pay, make sure you contribute at least 5 percent yourself, and then just like that, 10 percent of your annual salary is being saved.

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Don’t rush into retirement

Spending a few more years earning income, and delaying your Social Security benefits, can help you start retirement on stable footing. The longer you wait to start collecting your Social Security, the larger your monthly check may be. If you retire at your “full retirement age” (typically between 66 and 67), you’ll receive 100 percent of your monthly benefit. If you retire on the earlier side — let’s say 62 — you’ll only receive the minimum benefit. Your benefit increases by 8 percent every year that you wait, up until age 70. Spending a few extra years in the office could help you afford to retire more comfortably.

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It may sound intimidating — or feel like it’s too late — but it’s not! If you’re already participating in any of the above retirement strategies, you’re in a great spot. And if you aren’t, it’s never too late to get started. Building up your retirement savings now will only increase your chances of achieving the relaxing, enjoyable retirement you deserve.